Garena could fire Sea towards US$1t market cap dream, but Shopee growth plans weigh on near-term sentiment
Reinvestments to support business expansion reflect its focus on revenue growth over profitability, analysts say
Add BT as a preferred sourceNathania Chew
[SINGAPORE] Plans by Sea’s e-commerce arm Shopee to focus on growth – at the expense of margins – could weigh on the Internet giant’s near-term prospects, analysts say.
But developments at gaming arm Garena and digital financial services arm Monee could lift Sea to a good third-quarter showing – and another step towards founder Forrest Li’s rallying call for the group to hit US$1 trillion in market capitalisation.
The way CGS International (CGSI) analyst Jacquelyn Yow sees it, Shopee has entered “a reinvestment phase for growth, specifically in logistics”.
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